New Delhi: – The union cabinet of Ministers decided to announce ‘Production Linked Incentive’ (PIL) scheme to encourage domestic productivity. This scheme has a provision of ₹1.46 trillion (USD 20 billion). This scheme can prove beneficial for achieving the target of making India into a global manufacturing hub. It is also claimed that the scheme will also increase exports. Union Finance Minister Nirmala Sitharaman and Union Information and Broadcasting Minister Prakash Javadekar announced the details regarding the decision.
PIL is an incentive plan to promote domestic productivity. The scheme will be applicable for automobile industry, pharmaceutical industry, telecom sector, textile, solar, LED and other products and white goods meaning the household appliances. As per the scheme, if the companies from these sectors produce more than the targets, they will be rewarded with cash incentives. This additional production will be allowed to be exported.
This decision has been taken, keeping the objectives of Atmanirbhar Bharat and Make in India, in view. Union Finance Minister Nirmala Sitharaman said the government’s efforts are that the country should receive maximum foreign investment and India should become the global manufacturing hub. Sitharaman also said that this will result in more foreign investment in the country and help in achieving the ultimate goal of creating a place in the global supply chain.
It is claimed that with the PIL scheme, the Indian companies can be brought to international standards; they will emerge as competitors on the global level. As per experts, this scheme also will work for creating more employment. Only last month, Rajeev Kumar the Vice-President of the Niti Aayog had announced that the government would soon be announcing Production Linked Incentive scheme.